Trump warns 150 countries to finalize trade deals soon or face higher tariffs as negotiation deadlines rapidly approach.
President Trump warns 150 countries to quickly finalize trade deals or face higher tariffs from the United States.
Speaking after a business roundtable in Abu Dhabi, Trump indicated that progress in negotiations is too slow to accommodate all countries interested in deals.
He announced that within the next two to three weeks, Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick would formally notify nations about the tariffs they will be subject to if no agreement is reached.
Trump warns 150 nations to finalize deals soon or face increased tariffs penalties
During his recent Middle East trip, Trump emphasized that while many countries want to negotiate, his administration can’t meet them all in the time available.
He warned that after a brief extension, officials would begin sending letters outlining new tariff rates.
The president stressed fairness in these decisions but did not provide specifics on the potential tariff levels.
This development comes after a pause on reciprocal tariffs announced earlier this year, which gave countries 90 days to negotiate new terms with the U.S.
Paused tariffs set to resume or escalate
Trump originally introduced reciprocal tariffs on April 2, calling the date “Liberation Day,” and then suspended their implementation on April 9 to allow talks.
The trade war framework includes tariffs that can reach as high as 50% on certain imports.
If countries fail to strike deals, these high tariffs could soon return or increase.
Smaller nations with big trade deficits would suffer most, despite Trump saying appeals might be possible but likely unsuccessful.
Administration’s partial successes in trade deals
So far, the Trump administration has successfully negotiated reduced tariffs with a handful of countries, including the United Kingdom and China.
These agreements have eased tensions and lowered barriers, offering a model for other negotiations.
U.S. trade representatives are actively engaged in discussions with approximately a dozen countries, with India, Japan, and South Korea among those nearing deals.
However, new governments and political shifts may delay some progress.
Uncertainty over future tariff rates
There is still no clarity on the exact tariffs that will be imposed if countries fail to reach agreements within the upcoming deadline.
It remains unclear whether these new tariffs will replace the currently paused reciprocal tariffs permanently or serve as temporary measures during continued talks.
Presently, the United States enforces a 10% baseline tariff on most imported goods, with additional higher rates for selected products.
Trump has hinted that most countries might face tariffs exceeding this baseline moving forward.
Higher tariffs expected for many nations
After a 10% tariff deal with the UK, Trump warned other countries of higher tariffs.
Analysts at Fitch Ratings report that despite the tariff pause, the average U.S. tariff rate remains around 13%, significantly higher than the 2.3% average before Trump’s administration.
Trump aims for import taxes up to 50% within a year, highlighting his tough trade approach.